ACCA LW ^Eng Syllabus F. Management, Administration And The Regulation Of Companies - Appointment, Losing Office And Disqualification Of Directors - Past Papers ^{2 / 5}

State and explain the grounds upon which a person may be disqualified under the Company Directors Disqualification Act 1986.

In 2008, Dee, Fi, Gee and Ki formed a private limited company to pursue chemical research. They each took 100 shares in the company and each of them became a director in the company. The articles of association of the company were drawn up to state that Dee, a qualified accountant, was to act as the company secretary for a period of five years, at a yearly salary of £20,000.

In May 2012, Fi, Gee and Ki discovered that Dee had passed on some research results to a rival company.

As a consequence, Fi, Gee and Ki propose the following measures:

(a) to remove Dee from the board of directors;

Required:

Advise Fi, Gee and Ki as to the legality of the above proposals and how they may be achieved.

Note: The split of the mark allocation is shown against each of the proposals above.